Michael Saylor Wants ‘Intelligent Leverage’ to Boost MicroStrategy’s Bitcoin Strategy
MicroStrategy Inc. co-founder and chairman Michael Saylor intends to increase shareholder “intelligent leverage”.
Saylor discussed the company's capital structure optimization strategy with Bloomberg Television.
“We have $7.2 billion in convertible bonds, with $4 billion as equity through the strike and call price.”
“These convertibles have a nearly 100% delta, like equity. We want to develop smarter leverage for our common stock shareholders.”
The corporation raised $42 billion to buy and keep Bitcoin this year, accelerating its unusual strategy.
Due to this, its stock has risen 500%, beating Bitcoin's 150% increase.
MicroStrategy may leverage its position due to rising fixed-income securities demand.
Despite doubts about its strategy, MicroStrategy's market valuation is above $90 billion.
This development has earned the business entry in the Nasdaq 100 Index, which could boost institutional interest.
Bloomberg Intelligence reports that investors that monitor the tech benchmark index may buy over $2 billion in MicroStrategy shares after its inclusion on Friday.
Bitcoin's Unprecedented Rally Brings MicroStrategy's Market Cap Nears $100 Billion
This year, Bitcoin has risen 120%, reaching $100,000, and roughly 40% in the previous month.
MicroStrategy particularly benefited. Since 2020, the corporation has bought 386,700 BTC for $21.9 billion, valued $37.6 billion.
MicroStrategy added 249,850 BTC in 2024, exceeding Marathon Digital's 40,435 BTC by 985%.
MicroStrategy's market valuation is around $100 billion, placing it among significant U.S. corporations if Bitcoin rises.
Saylor just reported a 46.4% quarterly yield and 72.4% year-to-date return. On December 9, the company bought 21,550 BTC.
An annual $100 billion Bitcoin investment might add approximately $5 trillion to Microsoft's market worth, he said. The majority rejected the idea at the recent annual shareholder meeting.
#MicroStrategу #Saylor #FullMarketBullRun $BTC $BNB
